24 Jul 2011

Hong Kong property prices soar

10:00 am on 24 July 2011

Property prices are soaring in Hong Kong. Prices are up 12% so far this year and private rents are at their highest in 13 years.

Property prices are now so high that the government has increased the down payments and deposits for foreign buyers in a bid to curb inflation.

Nearly half the population lives in government or subsidised housing and buying their own home is out of reach for many residents. In addition, 150,000 families are on the waiting list.

The BBC reports many residents are also struggling to cope with rising costs. Hong Kong imports 90% of its food.

The government announced on Tuesday the city's consumer price index rose 5.6% in June from a year ago, the highest rate since July 2008, and above 5.2% in May.